Gold Nears $5,000 as Investors Await US Inflation Signals

By Staff, Agencies

Gold prices traded close to the $5,000 mark on Thursday, extending gains from the previous session as investors positioned themselves ahead of key US inflation data that could influence the Federal Reserve’s interest-rate decisions.

By 5:59 GMT, spot gold was up 0.19 percent at $4,997.47 per ounce, while US gold futures for April delivery rose 0.10 percent to $5,014.10. Spot silver also advanced, gaining 0.44 percent to $77.96 per ounce.

In the UAE, domestic gold prices recorded notable increases. Twenty-four-carat gold climbed AED4 to AED604.5, 22-carat rose AED3.5 to AED559.75, 21-carat added AED3.5 to AED536.75, and 18-carat increased AED3 to AED460. Meanwhile, 14-carat gold edged up AED2.25 to AED358.75.

Ole Hansen, Head of Commodity Strategy at Saxo Bank, said gold, silver, and copper began the Lunar New Year week under pressure, as several Asian markets — including China — remained closed for the holidays. The thinner trading volumes, he noted, amplified price movements and highlighted the importance of Asian demand in the recent rally.

With markets in mainland China, Hong Kong, Singapore, Taiwan and South Korea shut for celebrations, regional liquidity remained limited. At the same time, the US dollar hovered near a more than one-week high, making dollar-denominated gold more expensive for foreign buyers.

Despite short-term softness, Hansen maintained that long-term fundamentals continue to favor gold. He pointed to ongoing central bank diversification of reserves, expanding fiscal deficits, and high sovereign debt levels as factors supporting gold’s appeal as a store of value.

Minutes from the Federal Reserve’s January meeting showed policymakers were largely in agreement about keeping rates unchanged, though opinions varied on the next step. Some officials indicated further rate hikes remain possible if inflation persists, while others suggested cuts could follow if price pressures ease. According to CME’s FedWatch Tool, markets currently see June as the most likely timeframe for the first rate cut of the year.

Investors are now focused on weekly US jobless claims and Friday’s Personal Consumption Expenditures [PCE] report, the Fed’s preferred inflation gauge. Since gold does not generate yield, it typically benefits from a lower interest-rate environment.

Hansen also noted that geopolitical fragmentation and diversification away from dollar-based assets continue to underpin long-term demand, even if not always immediately reflected in prices. While corrections may occur after sharp rallies, he said the broader upward trend remains intact.

Elsewhere in precious metals, spot platinum rose 0.16 percent to $2,074.38, while palladium fell 0.41 percent to $1,708.50.

On silver, Hansen said its long-term outlook remains supported by both monetary demand and growth in solar photovoltaic applications. The Silver Institute forecasts a sixth consecutive annual structural deficit in 2026 of about 67 million ounces, compared with 95 million in 2025. Although supply is approaching decade highs, it still falls short of meeting strong investment demand.

From a technical standpoint, the recent rebound in prices has formed two lower highs, suggesting weakening buying momentum. After outperforming during the rally, silver experienced a sharper correction and continues to absorb that volatility.